A coastal location is valued in a number of different ways by a cross-section of the community. Industry and business value the coast for the tangible (eg. ports, jetties, quality soils, etc.) and intangible assets provided (eg. the view from a restaurant) and consequently, pay premiums for coastal land. Residents and visitors pay premiums in land prices or accommodation rates respectively. Day trip visitors to the coast are willing to pay significant sums to travel to, and enjoy the coast.
Figure 5: Victoria's industrial employment -
comparison of coastal and non-coastal locations 5
(includes
Melbourne and Geelong)
- Victoria's coastal areas generally have high concentrations of employment in hospitality based industries (eg. accommodation, cafes and restaurants) when compared to the rest of Australia. These industries rely on amenity and access issues such as views, development control, maintained and clean beaches and the coastal 'experience'. The relatively high concentration of these industries suggests that they export their services to consumers originating from outside the local area (ie. they attract visitors).6
- The coastal areas outside Melbourne have greater employment in the agriculture, forestry and commercial fishing industries when compared to the rest of Australia. This, in part, represents the rural quality of much of the coast and its proximity to fish stocks. These industries also export value beyond the local area into the broader community.7
- The ports of Victoria are key economic drivers for the State, handling some $50 billion worth of import and export trade each year.8 The Port of Melbourne alone contributes $5.8 billion annually to the State economy.9 In 1999-2000 the Port handled in excess 1.3 million containers, retaining its position as Australia's largest container port and one of the world's top 40 container ports.10
- Melbourne's coastal area is valued by cultural and recreational industries. These industries rely on safety and maintenance of the coastal area's recreational sites, and conservation of its amenity.11
- Non-users also value and appreciate the coast, as they value the ability of others (including future generations) to use and enjoy the coastal and marine environment.12
Tourism
- Overnight visitors to the coast pay a premium that equates to $700 million p.a.13
- Day trippers conservatively spend $166 million p.a. to get to coastal destinations. This figure does not include the value of travelling time, vehicular wear and tear, and consumer surplus (ie. some individuals would be willing to pay more if they had to).14
- Over 70 million visits are made to the coast each year by Victorians alone.15
Land values
- Property prices for most residential coastal locations are higher than those at non-coastal areas. The value of the premium paid by Victorian coastal residents equates to $250 million p.a.16 These higher values should also impact on the value of commercial use of public land, as reflected in leases and licenses.
- An analysis of
property price movements in Victoria over the past decade suggests that
there are certain coastal locations that not only currently have higher
median property prices but have also experienced rapid growth in land
values when compared to non-coastal locations and municipal benchmarks.
Specifically, locations on the Mornington Peninsula and the Surf and
West Coasts appear to enjoy residential property premiums that are linked
to their coastal proximity. These findings provide evidence that there
is a link between residential property premiums and proximity to the
Victorian coast.17
